MGIC Investment Corporation Reports First Quarter 2026 Results

First Quarter 2026 Net Income of $165.3 million or $0.76 per Diluted Share

First Quarter 2026 Adjusted Net Operating Income (Non-GAAP) of $165.1 million or $0.76 per Diluted Share

MILWAUKEE, April 29, 2026 /PRNewswire/ -- MGIC Investment Corporation (NYSE: MTG) today reported operating and financial results for the first quarter of 2026.

Tim Mattke, CEO of MTG and Mortgage Guaranty Insurance Corporation ("MGIC") said, "We had a strong start to the year, successfully executing on our business strategies and generating solid first quarter results. We achieved a return on equity of 13% while continuing to return meaningful capital to our shareholders.

"We are well-positioned to navigate dynamic environments, supported by our deep industry expertise, strong balance sheet, and disciplined approach to capital allocation. Our continued focus and commitment to meet our customers' evolving needs has allowed us to drive long-term shareholder value," concluded Mattke.

SUMMARY FINANCIAL METRICS

Quarter ended

($ in millions, except where otherwise noted)

Q1 2026

Q4 2025

Q1 2025

Net income

$ 165.3

$ 169.3

$ 185.5

Net income per diluted share

$ 0.76

$ 0.75

Adjusted net operating income

$ 165.1

$ 168.4

$ 185.2

Adjusted net operating income per diluted share

$ 0.76

$ 0.75

New insurance written (NIW) (billions)

$ 14.4

$ 17.1

$ 10.2

Net premiums earned

$ 235.4

$ 236.0

$ 243.7

Insurance in force (billions)

$ 302.7

$ 303.1

$ 293.8

Annual persistency

84.0 %

84.8 %

84.7 %

Losses incurred, net

$ 33.2

$ 31.2

$ 9.6

Primary delinquency inventory

27,006

27,072

25,438

Primary IIF delinquency rate (count based)

2.44 %

2.43 %

2.30 %

Loss ratio

14.1 %

13.2 %

3.9 %

Underwriting expense ratio

20.5 %

19.9 %

22.5 %

In force portfolio yield (bps)

38.0

38.4

Net premium yield (bps)

31.1

31.2

33.0

Annualized return on equity

13.0 %

13.1 %

14.3 %

Book value per common share outstanding

$ 23.63

$ 23.47

$ 21.40

Adjust for AOCI

$ 0.79

$ 0.61

$ 0.98

Tangible book value per share

$ 24.41

$ 24.08

$ 22.38

CAPITAL AND LIQUIDITY

As of

($ in billions, except where otherwise noted)

March 31, 2026

December 31, 2025

March 31, 2025

PMIERs available assets

$ 5.8

$ 5.7

$ 5.9

PMIERs excess

$ 2.9

$ 2.5

$ 2.6

Holding company liquidity (millions)

$ 709

$ 1,074

$ 824

FIRST QUARTER 2026 HIGHLIGHTS

SECOND QUARTER 2026 HIGHLIGHTS

Conference Call and Webcast Details

MGIC Investment Corporation will hold a conference call April 30, 2026, at 10:00 a.m. ET to allow securities analysts and shareholders the opportunity to hear management discuss the company's quarterly results. Individuals interested in joining by telephone should register for the call at https://register-conf.media-server.com/register/BIeb1b95ef583c49419a8d6b744e509dce to receive the dial-in number and unique PIN to access the call. It is recommended that you join the call at least 10 minutes before the conference call begins. The call is also being webcast and can be accessed at the company's website at http://mtg.mgic.com/ under "Newsroom." A replay of the webcast will be available on the company's website through May 30, 2026.

About MGIC

Mortgage Guaranty Insurance Corporation (MGIC) ( www.mgic.com), the principal subsidiary of MGIC Investment Corporation, provides mortgage insurance solutions that support responsible credit risk management for mortgage lenders and investors and enable borrowers to qualify for mortgages with lower down payments. As the founder and longstanding leader of today's private mortgage insurance industry, MGIC continues to guide the industry's evolution while serving as a trusted partner to lenders across the country.

This press release, which includes certain additional statistical and other information, including non-GAAP financial information and a supplement that contains various portfolio statistics, are all available on the Company's website at https://mtg.mgic.com/ under "Newsroom."

From time to time MGIC Investment Corporation releases important information via postings on its corporate website, and via postings on MGIC's website for information related to underwriting and pricing, and intends to continue to do so in the future. Such postings include corrections of previous disclosures and may be made without any other disclosure. Investors and other interested parties are encouraged to enroll to receive automatic email alerts and Really Simple Syndication (RSS) feeds regarding new postings. Enrollment information for MGIC Investment Corporation alerts can be found at https://mtg.mgic.com/shareholder-services/email-alerts. For information about our underwriting and rates, see https://www.mgic.com/underwriting.

Use of Non-GAAP financial measures

We believe that use of the Non-GAAP financial measures of adjusted pre-tax operating income (loss), adjusted net operating income (loss) and adjusted net operating income (loss) per diluted share facilitate the evaluation of the company's core financial performance thereby providing relevant information to investors. These measures are not recognized in accordance with accounting principles generally accepted in the United States of America (GAAP) and should not be viewed as alternatives to GAAP measures of performance.

Adjusted pre-tax operating income (loss) is defined as GAAP income (loss) before tax, excluding the effects of net realized investment gains (losses), gain and losses on debt extinguishment and infrequent or unusual non-operating items where applicable.

Adjusted net operating income (loss) is defined as GAAP net income (loss) excluding the after-tax effects of net realized investment gains (losses), gain and losses on debt extinguishment and infrequent or unusual non-operating items where applicable. The amounts of adjustments to components of pre-tax operating income (loss) are tax effected using a federal statutory tax rate of 21%.

Adjusted net operating income (loss) per diluted share is calculated in a manner consistent with the accounting standard regarding earnings per share by dividing (i) adjusted net operating income (loss) by (ii) diluted weighted average common shares outstanding, which reflects share dilution from unvested restricted stock units.

Although adjusted pre-tax operating income (loss) and adjusted net operating income (loss) exclude certain items that have occurred in the past and are expected to occur in the future, the excluded items represent items that are: (1) not viewed as part of the operating performance of our primary activities; or (2) impacted by both discretionary and other economic or regulatory factors and are not necessarily indicative of operating trends, or both. These adjustments, along with the reasons for their treatment, are described below. Trends in the profitability of our fundamental operating activities can be more clearly identified without the fluctuations of these adjustments. Other companies may calculate these measures differently. Therefore, their measures may not be comparable to those used by us.

(1)

Net realized investment gains (losses). The recognition of net realized investment gains or losses can vary significantly across periods as the timing of individual securities sales is highly discretionary and is influenced by such factors as market opportunities, our tax and capital profile, and overall market cycles.

(2)

Gains and losses on debt extinguishment. Gains and losses on debt extinguishment result from discretionary activities that are undertaken to enhance our capital position, and/or improve our debt profile.

(3)

Infrequent or unusual non-operating items. Items that are non-recurring in nature and are not part of our primary operating activities.

MGIC INVESTMENT CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

Three Months Ended March 31,

(In thousands, except per share data)

2026

2025

Net premiums written

$ 234,943

$ 235,346

Revenues

Net premiums earned

$ 235,363

$ 243,719

Net investment income

61,742

61,443

Net gains (losses) on investments and other financial instruments

(169)

741

Other revenue

141

331

Total revenues

297,077

306,234

Losses and expenses

Losses incurred, net

33,242

9,591

Underwriting and other expenses, net

48,108

53,063

Interest expense

8,899

Total losses and expenses

90,249

71,553

Income before tax

206,828

234,681

Provision for income taxes

41,525

49,221

Net income

$ 165,303

$ 185,460

Net income per diluted share

$ 0.76

$ 0.75

MGIC INVESTMENT CORPORATION AND SUBSIDIARIES

EARNINGS PER SHARE (UNAUDITED)

Three Months Ended March 31,

(In thousands, except per share data)

2026

2025

Net income - basic and diluted

$ 165,303

$ 185,460

Basic weighted average common shares outstanding

216,135

244,147

Dilutive effect of unvested restricted stock units

2,051

2,343

Diluted weighted average common shares outstanding

218,186

246,490

Diluted earnings per share

$ 0.76

$ 0.75

NON-GAAP RECONCILIATIONS

Reconciliation of Income before tax / Net income to Adjusted pre-tax operating income / Adjusted net operating income

Three Months Ended March 31,

2026

2025

(In thousands, except per share amounts)

Pre-tax

Tax Effect

Net

(after-tax)

Pre-tax

Tax Effect

Net

(after-tax)

Income before tax / Net income

$ 206,828

$ 41,525

$ 165,303

$ 234,681

$ 49,221

$ 185,460

Adjustments:

Net realized investment (gains) losses

(200)

(42)

(158)

(319)

(67)

(252)

Adjusted pre-tax operating income / Adjusted

net operating income

$ 206,628

$ 41,483

$ 165,145

$ 234,362

$ 49,154

$ 185,208

Reconciliation of Net income per diluted share to Adjusted net operating income per diluted share

Weighted average shares - diluted

218,186

246,490

Net income per diluted share

$ 0.76

$ 0.75

Net realized investment (gains) losses

0.00

Adjusted net operating income per diluted share

$ 0.76

$ 0.75

MGIC INVESTMENT CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

March 31,

December 31,

March 31,

(In thousands, except per share data)

2026

2025

ASSETS

Investments (1)

$ 5,719,421

$ 5,807,662

$ 5,901,057

Cash and cash equivalents

235,090

368,989

206,988

Restricted cash and cash equivalents

14,405

6,525

5,705

Reinsurance recoverable on loss reserves (2)

73,184

65,055

51,864

Home office and equipment, net

31,947

32,454

34,468

Deferred insurance policy acquisition costs

7,955

8,377

11,114

Deferred income taxes, net

15,494

18,512

46,196

Other assets

319,253

331,912

277,744

Total assets

$ 6,416,749

$ 6,639,486

$ 6,535,136

LIABILITIES AND SHAREHOLDERS' EQUITY

Liabilities:

Loss reserves (2)

$ 499,120

$ 474,884

$ 465,033

Unearned premiums

92,606

93,026

111,987

Senior notes

646,506

646,138

645,035

Other liabilities

141,230

277,887

173,197

Total liabilities

1,379,462

1,491,935

1,395,252

Shareholders' equity

5,037,287

5,147,551

5,139,884

Total liabilities and shareholders' equity

$ 6,416,749

$ 6,639,486

$ 6,535,136

Book value per share (3)

$ 23.63

$ 23.47

$ 21.40

(1) Investments include net unrealized gains (losses) on securities

$ (194,840)

$ (152,767)

$ (261,022)

(2) Loss reserves, net of reinsurance recoverable on loss reserves

$ 425,936

$ 409,829

$ 413,169

(3) Shares outstanding

213,200

219,367

240,194

MGIC INVESTMENT CORPORATION AND SUBSIDIARIES

ADDITIONAL INFORMATION - NEW INSURANCE WRITTEN

2026

2025

New primary insurance written (NIW) (billions)

$ 14.4

$ 17.1

$ 16.5

$ 16.4

$ 10.2

Monthly (including split premium plans) and

annual premium plans

13.9

16.6

16.1

16.0

9.9

Single premium plans

0.5

0.4

0.3

Product mix as a % of primary NIW

Credit score < 680

5 %

4 %

>95% LTVs

14 %

15 %

17 %

13 %

>45% DTI

25 %

26 %

27 %

26 %

31 %

Singles

4 %

3 %

2 %

Refinances

21 %

17 %

6 %

New primary risk written (billions)

$ 3.8

$ 4.4

$ 4.3

$ 2.6

MGIC INVESTMENT CORPORATION AND SUBSIDIARIES

ADDITIONAL INFORMATION - INSURANCE IN FORCE and RISK IN FORCE

2026

2025

Primary Insurance In Force (IIF) (billions)

$ 302.7

$ 303.1

$ 300.8

$ 297.0

$ 293.8

Total # of loans

1,106,958

1,112,727

1,111,855

1,107,526

1,105,863

Premium Yield

In force portfolio yield (1)

38.0

38.3

38.4

Premium refunds (2)

(0.3)

(0.4)

(0.3)

(0.1)

0.0

Accelerated earnings on single premium

0.2

0.3

0.2

Total direct premium yield

37.9

38.2

38.4

38.6

Ceded premiums earned, net of profit

commission and assumed premiums (3)

(6.8)

(6.7)

(5.9)

(5.4)

(5.6)

Net premium yield

31.1

31.2

32.3

33.0

Average Loan Size of IIF (thousands)

$ 273.4

$ 272.4

$ 270.6

$ 268.2

$ 265.7

Annual Persistency

84.0 %

84.8 %

85.0 %

84.7 %

Primary Risk In Force (RIF) (billions)

$ 81.2

$ 80.6

$ 79.5

$ 78.5

By credit score (%) (4)

760 & >

45 %

44 %

740-759

18 %

720-739

14 %

700-719

10 %

680-699

7 %

660-679

3 %

640-659

2 %

639 & <

1 %

2 %

Average Coverage Ratio (RIF/IIF)

26.8 %

26.7 %

(1)

Total direct premiums earned, excluding premium refunds and accelerated premiums from single premium policy cancellations divided by average primary insurance in force.

(2)

Premium refunds and our estimate of refundable premium on our delinquency inventory divided by average primary insurance in force.

(3)

Ceded premiums earned, net of profit commissions and assumed premiums. Assumed premiums include our participation in GSE Credit Risk Transfer programs, of which the impact on the net premium yield was 0.5 bps in the first quarter of 2026.

(4)

The credit score at the time of origination for a loan with multiple borrowers is the lowest of the borrowers' "decision credit scores." A borrower's "decision credit score" is determined as follows: if there are three credit scores available, the middle credit score is used; if two credit scores are available, the lower of the two is used; if only one credit score is available, it is used.

MGIC INVESTMENT CORPORATION AND SUBSIDIARIES

ADDITIONAL INFORMATION - DELINQUENCY STATISTICS

2026

2025

Primary IIF - Delinquent Roll Forward - # of

Loans

Beginning Delinquent Inventory

27,072

25,747

24,444

25,438

26,791

New Notices

13,791

14,489

13,582

11,970

12,965

Cures

(13,393)

(12,632)

(11,814)

(12,588)

(13,981)

Paid claims

(457)

(359)

(341)

(312)

Rescissions and denials

(7)

(13)

(18)

(35)

(25)

Other items removed from inventory (1)

—

(160)

(88)

—

Ending Delinquent Inventory

27,006

27,072

25,747

24,444

25,438

Primary IIF Delinquency Rate (count based)

2.44 %

2.43 %

2.32 %

2.21 %

2.30 %

Primary claim received inventory included in

ending delinquent inventory

383

398

333

295

304

Composition of Cures

Reported delinquent and cured

intraquarter

3,973

3,917

3,606

3,268

4,321

Number of payments delinquent prior to

cure

3 payments or less

6,262

5,734

5,141

5,708

6,379

4-11 payments

2,702

2,466

2,500

2,887

2,759

12 payments or more

456

515

567

725

522

Total Cures in Quarter

13,393

12,632

11,814

12,588

13,981

Composition of Paids

Number of payments delinquent at time

of claim payment

3 payments or less

—

4-11 payments

12 payments or more

399

327

326

309

283

Total Paids in Quarter

457

359

341

312

Aging of Primary Delinquent Inventory

Consecutive months delinquent

3 months or less

9,655

36 %

10,389

38 %

9,817

38 %

8,552

35 %

8,497

33 %

4-11 months

10,289

38 %

9,559

35 %

8,858

34 %

8,868

36 %

9,907

39 %

12 months or more

7,062

26 %

7,124

27 %

7,072

28 %

7,024

29 %

7,034

28 %

Number of payments delinquent

3 payments or less

13,376

49 %

14,121

52 %

13,406

52 %

12,260

50 %

12,319

48 %

4-11 payments

9,364

35 %

8,747

32 %

8,122

32 %

7,963

33 %

8,788

35 %

12 payments or more

4,266

16 %

4,204

16 %

4,219

16 %

4,221

17 %

4,331

17 %

(1)

Items removed from inventory are associated with commutations of coverage on non-performing policies.

MGIC INVESTMENT CORPORATION AND SUBSIDIARIES

ADDITIONAL INFORMATION - RESERVES and CLAIMS PAID

2026

2025

Reserves (millions)

Primary Direct Loss Reserves

$ 497

$ 472

$ 450

$ 462

Other Gross Loss Reserves

Total Gross Loss Reserves

$ 499

$ 475

$ 452

$ 465

Primary Average Direct Reserve

Per Delinquency

$ 18,398

$ 17,449

$ 17,462

$ 18,395

$ 18,167

Net Paid Claims (millions) (1)

$ 17

$ 16

$ 14

$ 12

Total primary (excluding settlements)

Rescission and NPL settlements

—

Reinsurance

(4)

(3)

(2)

LAE and other

Reinsurance Terminations (1)

—

(1)

—

Primary Average Claim Payment

(thousands) (2)

$ 42.7

$ 46.1

$ 39.7

$ 36.5

$ 38.8

(1)

Net paid claims, as presented, does not include amounts received in conjunction with terminations or commutations of reinsurance agreements.

(2)

Excludes amounts paid in settlement disputes for claims paying practices and/or commutations of policies.

MGIC INVESTMENT CORPORATION AND SUBSIDIARIES

ADDITIONAL INFORMATION - REINSURANCE AND MI RATIOS

2026

2025

Quota Share Reinsurance

% NIW subject to reinsurance

86.4 %

86.2 %

88.2 %

87.7 %

86.8 %

Ceded premiums written and earned (millions)

$ 37.8

$ 38.9

$ 32.0

$ 28.1

$ 29.9

Ceded losses incurred (millions)

$ 12.0

$ 11.9

$ 6.1

$ 4.0

$ 6.4

Ceding commissions (millions) (included in

underwriting and other expenses)

$ 13.4

$ 12.9

$ 12.1

$ 11.7

Profit commission (millions) (included in ceded

premiums)

$ 29.1

$ 28.3

$ 32.6

$ 32.3

$ 28.7

Excess-of-Loss Reinsurance

Ceded premiums earned (millions)

$ 17.8

$ 14.8

$ 16.2

$ 15.4

$ 14.7

GAAP loss ratio

14.1 %

13.2 %

4.5 %

(1.2 %)

3.9 %

GAAP underwriting expense ratio

20.5 %

19.9 %

21.1 %

21.9 %

22.5 %

Mortgage Guaranty Insurance Corporation - Risk to

Capital

9.6:1

10.0:1

9.7:1

10.0:1

9.8:1

Combined Insurance Companies - Risk to Capital

9.6:1

10.0:1

9.7:1

10.0:1

9.7:1

Safe Harbor Statement

Forward Looking Statements and Risk Factors:

This release contains forward looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based on current assumptions, expectations, and projections and are subject to risks and uncertainties that could cause actual results to differ materially. Forward-looking statements consist of statements which relate to matters other than historical fact, including matters that inherently refer to future events. Among others, statements that include words such as "believe," "anticipate," "will" or "expect," or words of similar import, are forward-looking statements. Our actual results may differ, possibly materially, from those expressed or implied in such forward-looking statements. Factors and uncertainties that could cause actual results to differ can be found in the "Risk Factors" and "Forward-Looking Statements" sections included in MGIC Investment Corporation's Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. Such factors and uncertainties include, without limitation:

We are not undertaking any obligation to update any forward-looking statements or other statements we may make even though these statements may be affected by events or circumstances occurring after the forward looking statements or other statements were made. No investor should rely on the fact that such statements are current at any time other than the time at which this press release was delivered for dissemination to the public.

While we communicate with security analysts from time to time, it is against our policy to disclose to them any material non-public information or other confidential information. Accordingly, investors should not assume that we agree with any statement or report issued by any analyst irrespective of the content of the statement or report, and such reports are not our responsibility.

SOURCE MGIC Investment Corporation